Patria Acquires Nexus Capital, Expands Colombian Real Estate Platform

Patria Investments Limited, a leading alternative asset manager in Latin America, has announced its agreement to acquire Nexus Capital, an independent real estate asset manager in Colombia. Nexus Capital manages approximately $800 million in assets across various strategies. With this acquisition, Patria’s real estate assets under management (AUM) in Colombia will surpass $2.2 billion. The transaction is expected to close by Q3 2024.

Alfonso Duval, Partner and Head of the Andean Region at Patria, remarked, “Nexus has a strong portfolio in the Colombian real estate market. Their impressive track record and innovative investment approach will significantly enhance our real estate platform, supporting our growth objectives and strengthening investor relations in Colombia and the broader region.”

Founded in 2008, Nexus Capital focuses on the office, retail, industrial, and housing real estate markets in Colombia. Nearly 90% of their AUM are in permanent capital or long-duration structures. Nexus has grown significantly over the past five years, becoming a top independent real estate asset manager in Colombia with a diverse range of products across core, opportunistic, and development strategies. The firm is led by Fuad Velasco and comprises a team of 28 professionals.

In recent years, Patria has been expanding its real estate platform in Latin America. In June 2022, Patria acquired 50% of VBI, with an option to buy the remaining 50% in 2024. This acquisition, along with the CSHG Real Estate business unit, positions Patria as the largest independent Real Estate Investment Trust (REIT) manager in Brazil with over $4 billion in AUM.

Furthermore, in November 2023, Patria and Bancolombia launched a joint venture, adding over $1.3 billion in real estate AUM and leveraging Bancolombia’s local distribution network. The Nexus acquisition is a strategic step towards consolidating Colombia’s alternative asset management industry, enhancing Patria’s local investment capabilities and distribution resources. Upon completion, Patria’s Latin American real estate platform will reach approximately $7 billion in AUM, with about 90% in permanent capital vehicles.

Marcelo Fedak, Partner and Head of Real Estate at Patria, stated, “We are excited to welcome the talented Nexus team to Patria. Their diversified real estate platform complements our existing offerings and enhances our ability to serve clients in Colombia. Nexus has established strong relationships with key investors, which we intend to maintain and expand.”

Transaction Overview

The financial details of the transaction have not been disclosed. Patria will acquire 100% of Nexus, adding approximately $800 million to Patria’s Fee Earning AUM, including over $680 million in permanent capital vehicles. The acquisition is expected to immediately boost Patria’s Fee Related and Distributable Earnings.

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